input costs

In early September, the USDA released its 2022 Farm Sector Income Forecast, which showed a mixed bag for the farm economy.  ERS predicts producer cash receipts will increase 21% to more than $525 billion nationally.  Crop values are expected to increase 9% year-over-year, while cash receipts from animal production will be up 28% from 2021 numbers.   Despite el...

Staggering farm input costs are driving Ag profits into the ground.  South Dakota Senator John Thune said it’s a tale of two economies: one, the economy of scale, and two, the cost of farming.   “This year will be the record year in terms of gross farm receipts.  In other words, top-line...

Farmer sentiment improved in August as the Purdue-CME Group Ag Economy Barometer rose 14 points above its July reading to 117.  Both the Index of Current Conditions and the Index of Future Expectations increased last month, meaning producers were less worried about their farm’s financial situation than in July, although they remain concerned about a possible cost-price squeeze.     When... Read Mo

U.S. beef producers face higher input costs this year, predicted up 7% when compared to 2021.  ERS reported earlier this week the farmer’s share of the retail value of beef also increased year over year, but rising input costs, especially for cattle feed, may limit farmers’ ability to benefit from higher cattle prices.   Feed ex...

According to the USDA, farm production expenses hit $392.9 billion in 2021, a 7.3% year-over-year increase ($3.66.2 billion in 2020).  The four biggest expenditures totaled $189.4 billion, just over 48% of all expenses last year.  Those four are feed at 16%, farm services at 11%, livestock, poultry, and related expenses at 10%, with labor accounting for 9.4%. The total fu...

Just ask Andrew Eddie, and he’ll tell you that 2022 is a challenging year for hay growers across Washington.  But, he noted it’s not challenging for the typical variables, such as weather and market prices, but rather for input costs.  The Vice Presi...

Late last week, USDA released its latest Ag Prices Report, and to no one’s surprise, there were two key topics of discussion.  The rising commodity prices received by farmers in June, and the rising cost of inputs.  Gary Crawford breaks down the details.   If you...

The Idaho Cattle Association held its annual summer meeting in Pocatello last month.  The two-day meeting featured sessions on a variety of topics, as well as an annual Range Tour, brining producers and agencies together.  Cameron Mulrony, Executive Vice President of the ICA says two of the most popular topics on the minds of producers focuses on input costs as well as the political landscape in I

The top economist for the American Farm Bureau predicts fuel and fertilizer prices will stay high the next couple of years as commodity prices further squeeze farm margins.  Roger Cryan said input inflation spurring higher interest rates will make farming more expensive, and may stick around into 2024. “...

The American Farm Bureau is calling on USDA to take steps to make sure American farmers continue to have access to crucial fertilizer supplies.  The organization submitted comments on USDA’s “Request for Information on Access to Fertilizer.”  AFBF said man...